during 2003
In addition to our low fares and convenient flight schedule, frequent flyers are generously rewarded with free trips through the companyÆs Rapid Rewards program.
There was a downturn in passenger volume and revenues following the attacks on 9/11/2001 suggesting that this company is susceptible if additional attacks occur
Southwest recently lost one of its most charismatic leaders, Mr. Kelleher. Kelleher played a major role in developing employee centered the business model that has made Southwest successful
Employees and investors are wary of KelleherÆs replacement
A strike among SouthwestÆs unionized employees could ground the airline
The concessions Southwest has made to union members could seriously reduce the companyÆs profitability
Certain United States airlines have established marketing or code-sharing alliances with each other. Southwest has opted not to join these alliances, and time will tell if this was the correct decision.
The Company does not anticipate a complete recovery in revenues until the economy fully recovers and there is an upturn in business travel.
To expand the number of cities it serves
To control operating costs more carefully
To take advantage of the weaknesses of other carrier by expanding while they retrench
Additional security requirements could convince potential customers to travel even less. This, combined with the high fixed costs including the cost to finance and service its fleet of aircraft
There could be increased competition from the other so called no frills airlines, or other airlines could attempt to copy the Southwest business model
The risk of government intervention and re-regulation of the airline industry û possibly in response to the bankruptcies of some of the larger airlines including American Airlines and United at some point in the near future
There are now a number of new, rapidly growing carriers with costs roughly co...